A loyalty program can be one of the most effective ways to increase customer retention, drive repeat purchases, and grow long-term revenue on your Shopify store. But with so many tools and approaches available, it can be hard to know where to start – or how to build a program that actually works.

In this guide, we’ll walk you through everything you need to know to create a successful Shopify loyalty program, including:

• What a loyalty program is and why it matters for your eCommerce store
• The most popular types of loyalty programs you can implement on Shopify
• A step-by-step guide to setting up a loyalty program in your store
• A comparison of the best Shopify loyalty apps (features, pricing, use cases)

Let’s get started!

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What is a Shopify Loyalty Program & Why It Matters for eCommerce Stores?

A Shopify loyalty program is a reward system designed to encourage repeat purchases and strengthen customer relationships within your Shopify store. It rewards customers for actions like making a purchase, referring friends, signing up for a newsletter, or engaging with your brand.

Instead of always spending on ads to bring in new shoppers, a loyalty program helps you maximize the value of the customers you already have. 

Why does a Shopify loyalty program matter for your e-store? Here are five reasons:

• Loyal customers are more likely to return, reducing your reliance on new customer acquisition.
• Rewards and tiers can incentivize shoppers to spend more per order.
• Many programs include referral features that turn happy customers into brand advocates.
• With more repeat purchases, your store becomes more profitable over time.
• Exclusive rewards, early access, and personal touches foster emotional loyalty.

For Shopify merchants, adding a loyalty program is an effective way to drive sustainable growth, especially when paired with other retention strategies like email marketing and personalization.

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Types of Loyalty Programs You Can Implement on Shopify

Loyalty programs come in different formats, each designed to motivate customers in a specific way. Some focus on rewarding frequent purchases, while others build long-term engagement or encourage referrals.

1. Points-based programs

In a points-based system, customers earn points for specific actions—such as placing an order, writing a review, or following your social media pages. These points can later be exchanged for discounts, free products, or shipping perks. This approach is simple, flexible, and widely understood by customers.

Ideal for: Stores with high order volume or frequent purchases (e.g., beauty, pet supplies, everyday goods). 

Keep in mind: If rewards aren’t clearly explained or exciting, the program may feel too transactional.

2. Tiered loyalty programs

Tiered programs reward loyalty over time. Customers progress through levels—like Bronze, Silver, and Gold—based on their cumulative spending or engagement. Each tier unlocks better rewards, creating a sense of status and exclusivity. This structure motivates shoppers to stay engaged for longer.

Best suited for: Fashion, beauty, lifestyle, or luxury brands.

Potential drawback: New customers may need time to feel the program’s value.

3. Referral programs

Referral programs encourage existing customers to invite others to your store. When a friend makes a purchase, both parties receive a reward—like store credit or a discount. It’s a powerful way to grow your customer base organically.

Works well for: Brands with loyal communities or highly shareable products.

Challenge: Success relies heavily on your customers’ willingness to refer others.

4. VIP or subscription-based rewards

These programs offer premium advantages—such as exclusive discounts, early product access, or free shipping—to your top customers or paid members. You can base access on spending thresholds or offer a paid membership tier. They’re great for rewarding high-value customers and building brand affinity.

Recommended for: Premium or high-ticket brands or businesses with subscription models.

Limitation: May not resonate with one-time shoppers or price-sensitive buyers.

5. Hybrid programs (mix of above)

Each type has its strengths—but also some limitations. That’s why many successful Shopify stores combine multiple types to create a well-rounded loyalty experience.

Rather than choosing one model, many Shopify merchants combine multiple loyalty strategies into a hybrid program. For example, you could:

• Use points to reward purchases
• Add tiers to reward long-term spending
• Include referrals to encourage organic growth
• Offer VIP perks to top-tier customers

Hybrid programs are perfect for Shopify stores looking to scale loyalty efforts and personalize the experience. But here’s the tip: Start with one model, then evolve into a hybrid structure as your customer base grows.

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How to Create Loyalty Program on Shopify?

Step 1. Choose the right app or custom-build option

There are two main implementation paths for the Shopify loyalty program:

• Use a Shopify loyalty app
• Opt for a custom-built loyalty solution

Using a Shopify loyalty app is the most common option for store owners. Apps like Smile.io, Yotpo Loyalty & Referrals, and Rise.ai offer pre-built loyalty frameworks that integrate directly with your Shopify store. These tools allow you to configure reward types, assign earning rules, and track customer activity—often with minimal setup time. 

(Note: We’ll explore the top loyalty apps in the next section for easier comparison.)

For stores with unique reward logic, advanced tiering, or brand-specific features, working with a Shopify developer or agency to build a custom program may be more suitable. This option allows for full design and feature control but typically requires a larger investment and ongoing development support.

Step 2. Define your reward structure

Before launching, you should clearly define how your Shopify loyalty program will work:

• Earning actions: purchases, reviews, referrals, newsletter signups, social shares, etc.
• Reward types: discount codes, free shipping, free products, early access, store credit
• Points logic: e.g., 1 point per $1 spent; 500 points = $5 off
• Tier levels (if any): set thresholds for reaching new reward levels
• Expiry conditions: set rules for when points or rewards expire (optional)

A well-defined structure helps ensure transparency and increases engagement.

Step 3. Customize design and on-site messaging

Consistency with your store’s branding helps increase trust and participation. Most Shopify loyalty apps allow visual customization, including:

• Naming your program (e.g., “Glow Club,” “Insider Rewards”)
• Choosing program colors, icons, and fonts that match your brand
• Displaying progress bars, tier badges, or widgets on account and checkout pages
• Creating a dedicated loyalty page explaining how the program works

Now, you should make sure messaging is clear and accessible, especially at key customer touchpoints like the product page, cart, and post-purchase screens.

Step 4. Promote your program across channels

A loyalty program won’t drive results unless customers know about it. It’s recommended to promote it consistently across:

• Website: banners, pop-ups, account page callouts
• Emails: welcome sequences, transactional emails, and loyalty-focused campaigns
• SMS or Push Notifications: reminders when points are earned or rewards are unlocked
• Social Media: announcements, stories, and highlights explaining the benefits

You can use clear CTAs like “Join Now,” “Earn Rewards,” or “Start Collecting Points” to drive conversions.

Step 5. Monitor and optimize performance

Once your program is live, it’s time to track KPIs to evaluate its effectiveness:

• Program sign-up rate
• Percentage of customers actively earning or redeeming rewards
• Increase in repeat purchase rate
• Customer lifetime value (CLV) among loyalty members vs. non-members

With these insights, you can improve your reward structure, adjust communication frequency, or test new incentives. Loyalty programs perform best when treated as ongoing initiatives—not one-time setups.

Best Shopify Loyalty Apps to Consider

If you’re planning to launch a Shopify loyalty program using an app (as discussed in Step 1), Shopify offers a wide range of solutions—each designed to support different loyalty strategies, such as points-based systems, VIP tiers, referrals, or branded store credit.

Below are six leading apps that align with the types of loyalty programs we explored earlier. These tools allow you to implement most loyalty frameworks without building a custom solution from scratch.

1. Smile: Loyalty Rewards Program

Rating: 4.8 ★ (6,700+ reviews)

Smile: Loyalty Rewards Program is one of the most widely used loyalty apps for Shopify. It offers a user-friendly interface and supports points-based, referral, and VIP tier programs, making it a strong choice for both small and mid-sized merchants.

Features:

• Points for purchases, account creation, reviews, and birthdays
• Referral program with double-sided rewards
• VIP tiers based on customer activity
• Reward social activity on Instagram, TikTok, Facebook
• Integrations with Klaviyo, Gorgias, and 25+ others

Pricing:

• Free plan available (limited features).
• Paid plans start at $49/month.

Use cases: Great for small to medium-sized Shopify stores looking for a simple, flexible loyalty program that’s easy to launch without development support.

2. Yotpo Loyalty Rewards Referral

Rating: 4.7 ★ (2,600+ reviews)

Yotpo Loyalty is a powerful, no-code platform built to deliver more than just points and perks. It enables Shopify merchants to launch and scale highly customized loyalty programs that drive real retention, increase customer lifetime value (LTV), and build brand affinity across the full customer journey. It’s also designed to work seamlessly with the broader Yotpo suite (SMS, reviews, and subscriptions).

Features:

• 20+ out-of-the-box campaigns for points, referrals, and tiered rewards
• Customizable program logic—based on points, spend, purchase behavior, or referrals
• No-code program builder for fast setup and easy iteration
• Robust analytics to track ROI, AOV, LTV, and customer behavior

Pricing: 

• Free to install (available to stores with fewer than 100 monthly orders).
• Paid plans start at $199/month.

Use cases: Ideal for growing Shopify stores that want to build an end-to-end customer engagement ecosystem within the Yotpo platform.

3. BON Loyalty

Rating: 4.9 ★ (1,900+ reviews)

BON Loyalty is a fast-growing app offering strong functionality at an accessible price, supporting points, referrals, and VIP tiers. It’s especially popular among small and midsize merchants looking for affordable yet complete loyalty tools.

Features:

• Seamless loyalty rewards across online and in-store (POS) channels
• VIP Tier system with accelerated earning, bonus rewards, and exclusive perks
• Points and program visibility across homepage, product pages, and checkout
• Global-ready with 250+ language showcases and multi-currency support
• Customization and enterprise-level options via the Exclusive Package
• Automated loyalty emails and bonus point promotions

Pricing: 

• Free plan available (includes most core features).
• Paid plans start at $15/month.

Use cases: Ideal for small to medium-sized Shopify merchants looking for strong functionality without high costs and businesses just starting out with loyalty.

4. Rise.ai: Gift Cards & Loyalty

Rating: 4.7 ★ (1,000+ reviews)

Rise.ai helps Shopify merchants move beyond traditional point systems by offering a loyalty solution based on store credit, cashback, gift cards, and memberships. Designed to boost customer retention and revenue per recipient (RPR), Rise.ai enables brands to create unified reward experiences that deliver real value through cash-equivalent credits.

Features:

• Personalized credit-based rewards under a unified balance
• Bulk campaigns, multi-store support, customizable gifting workflows
• Free shipping, referral rewards, sign-up credits, and tiered perks
• Gift cards and credit balances synced across in-store and online
• Issue store credit as compensation or refunds to reduce revenue loss

Pricing:

• Starts at $19.99/month.
• Higher plans available based on features and order volume.

Use cases: A strong option for stores that want to keep things simple by offering store credit instead of managing a points system—especially for post-purchase rewards or B2B models.

5. LoyaltyLion Rewards & Referral

Rating: 4.7 ★ (600+ reviews)

LoyaltyLion enables Shopify merchants to create a fully branded, integrated loyalty experience designed to increase returning customer rates. With a focus on personalization and behavioral triggers, LoyaltyLion helps merchants build trust, drive second purchases, and increase customer lifetime value through tailored incentives.

Features:

• Customizable loyalty page embedded in your Shopify storefront
• Loyalty points to incentivize enrollment, repeat purchases, and second orders
• Flexible rewards for referrals, reviews, and social media engagement
• Automated loyalty emails and in-site notifications to boost participation
• Segmentation tools and insights to reduce churn and retain loyal customers
• Integrates with Klaviyo, Recharge, Gorgias, and more

Pricing:

• Free plan available (limited to basic features).
• Paid plans start at $199/month.

Use cases: Well-suited for established brands or Shopify Plus merchants that require deeper customization, analytics, and integration with other marketing tools.

6. Stamped Loyalty

Rating: 4.1 ★ (140+ reviews)

Stamped Loyalty & Referrals allows Shopify merchants to maximize customer retention and lifetime value through a fully customizable loyalty program that includes points-based rewards, VIP tiers, and referral campaigns. 

Features:

• Customizable Shopify rewards program tailored to your brand
• Integrated Referral Program with double-sided rewards
• VIP Tiers to recognize and incentivize high-value customers

Pricing: 

• Free plan available.
• Paid plans begin at $59/month.

Use cases: Best for Shopify stores already using or planning to use Stamped Reviews or those who want a single vendor for reviews + loyalty.

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Shopify Loyalty Program: FAQs

1. Can Shopify do loyalty programs?

Yes. Shopify supports loyalty programs through third-party apps like Smile.io, Yotpo Loyalty, Rise.ai, and so on. These apps integrate directly with your store, allowing you to launch points-based systems, referral programs, VIP tiers, or store credit-based rewards.

2. How to set up rewards on Shopify?

To set up rewards on Shopify, you’ll need to install a loyalty app such as Smile.io, Yotpo Loyalty, or Rise.ai. After installing, you can configure reward rules – like how many points customers earn per dollar spent—and define what those points can be redeemed for (discounts, gifts, store credit, etc.).

3. How much does Smile.io cost?

Smile.io offers a free plan with limited features (points program only). Paid plans start at $49/month and include access to referral programs, VIP tiers, advanced customization, and third-party integrations.

4. How to set up a loyalty rewards program?

To set up a loyalty rewards program on Shopify:

• Step 1: Choose the right app or custom-build option
• Step 2: Define your reward structure
• Step 3: Customize design and on-site messaging
• Step 4: Promote your program across channels
• Step 5: Monitor and optimize performance

5. Is a loyalty program worth it for small Shopify stores?

Absolutely. Even a basic loyalty program can increase repeat purchases and build customer relationships. Starting small with a points or referral program is low-risk and can grow as your business scales.

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Final Thoughts

A well-designed Shopify loyalty program can significantly increase customer retention, boost repeat purchases, and build stronger brand relationships. Let’s start by identifying what motivates your customers, choosing a loyalty app that fits your needs, and building a program that grows with your business.

At LitOS, we specialize in custom Shopify Development, so whether you need help implementing a loyalty app, customizing its design, or building a completely tailored loyalty experience, our team is here to support you. Let’s turn your store into a brand your customers keep coming back to.